Gallium nitride leader, INNOSCIENCE (02577), officially included in Stock Connect!

In December 2024, INNOSCIENCE (02577) successfully listed on the Main Board of the Hong Kong Stock Exchange, becoming the "first stock of gallium nitride". Just now, INNOSCIENCE has received another major positive news. According to announcements from the Shanghai Stock Exchange and the Shenzhen Stock Exchange, the third-generation semiconductor enterprise INNOSCIENCE, which recently went public in Hong Kong, was officially included in the Hong Kong Stock Connect on March 10, 2025. INNOSCIENCE's inclusion in the Hong Kong Stock Connect will attract global funds and consolidate its core position in the gallium nitride industry chain. Note: The Hong Kong Stock Connect is a convenient channel for mainland investors to invest in Hong Kong stocks, connecting the stock markets of Shanghai, Shenzhen, and the Hong Kong Stock Exchange. The benefits of inclusion: attracting more fund attention, enhancing company visibility, and promoting stock liquidity. The global gallium nitride (power semiconductor) market is experiencing rapid growth, and INNOSCIENCE holds a core position in the industry chain. The global gallium nitride power semiconductor market is currently in a golden period of rapid growth. Gallium nitride, with its high efficiency, low loss, and excellent high-temperature stability, exhibits extraordinary charm in the field of electronic power conversion. The booming development of the new energy vehicle industry has placed higher demands on the performance of on-board power and propulsion systems; the continued expansion of data center scale has also created an urgent need for energy conservation and consumption reduction. The strong growth of these downstream applications has driven a surge in demand for gallium nitride in the market. According to data from Frost & Sullivan, in 2023, the gallium nitride power semiconductor industry entered a year of exponential growth, and the market is expected to grow rapidly. By 2028, the global gallium nitride power semiconductor market size will reach RMB 50.1 billion, with a market share of 10.1% in the global power semiconductor market and 24.9% in the global power semiconductor discrete device market, bringing unprecedented opportunities for industry participants. As a leader in the industry, INNOSCIENCE continues to increase its investment in technology research and development, leading the way in achieving mass production of 8-inch silicon-based gallium nitride wafers. As of June 30, 2024, INNOSCIENCE has the largest gallium nitride power semiconductor production base in the world, with a capacity of 12,500 wafers per month. The company's product research and development range covers voltage ranges from 15V to 1200V, widely used in consumer electronics, automotive electronics, data centers, renewable energy, and other fields. In terms of gallium nitride discrete device shipments, INNOSCIENCE's product shipment share reached 42.4% in 2023, securing its position as the global leader. INNOSCIENCE, with breakthroughs in a wide range of gallium nitride technologies, has enormous growth potential in data centers, electric vehicles, Siasun Robot & Automation, and other industries. In the data center sector, facing strict requirements for energy efficiency and heat dissipation, INNOSCIENCE's gallium nitride products are used in power supply units, with high switching speeds and low on-resistance characteristics, greatly improving power conversion efficiency and reducing energy consumption. According to Frost & Sullivan's statistics, the gallium nitride power semiconductor market in the data center sector is expected to grow to RMB 1.462 billion by 2028, showing a high-speed growth trend. In the electric vehicle sector, gallium nitride is used in key components such as on-board chargers and DC-DC converters, significantly improving charging speed, extending range, and reducing weight. It is estimated that for electric vehicles, the market size of gallium nitride power semiconductors is expected to increase from RMB 2.46 billion in 2024 to RMB 24.6 billion in 2028, with a compound annual growth rate of 216.4%. In the Siasun Robot & Automation industry, the high-frequency characteristics of gallium nitride allow for quicker response from control systems, more precise movements, lower power consumption, and longer battery life, providing strong support for the performance improvement of Siasun Robot & Automation and setting a new benchmark in the industry. With favorable policies frequently issued and the country enhancing support for third-generation semiconductors, INNOSCIENCE gains further momentum in localization. The Chinese government attaches great importance to the third-generation semiconductor industry, and the "14th Five-Year Plan" clearly states the need to accelerate the development of third-generation semiconductors and other cutting-edge new materials, with various regions issuing policies to encourage research and development investment. As a leading domestic enterprise in the field of gallium nitride, INNOSCIENCE has obvious advantages in localization. The company has built a comprehensive research and development, production, and sales system in the country, enabling it to quickly respond to market demands. At the same time, it actively collaborates closely with upstream and downstream companies to participate in the construction of the domestic industry chain. In terms of talent cultivation and technological innovation, it has received strong support from the government and universities, with a research and development team composed of semiconductor experts from both domestic and international institutions, closely integrating industry, academia, and research to accelerate the transformation of technological achievements. With the favorable policy environment, INNOSCIENCE has broad prospects for development and is expected to continue injecting strong momentum for the industry.